FX.co ★ Konnect2fx | CL/Crude Oil

Oil on the weekly chart is showing a mixed but still constructive structure. The market made a strong bullish move from the 60.00 area and rallied toward the 105.00 resistance zone. After that sharp rise, price entered a consolidation phase and is now trading around the 87.90 support area. I can see that buyers are still defending this level because several recent candles closed above the support zone. The Bollinger Bands expanded strongly during the rally, which shows that volatility increased significantly. Now the bands are starting to flatten, suggesting that the market is taking a pause before its next major move. The RSI is near 53, which is close to the middle level and shows that momentum is neutral. I think this is important because it means the market is not overbought or oversold. Volume increased during the strong upward move and remains relatively healthy, indicating that institutional participation is still present. As long as price remains above the 87.90 support zone, the longer-term trend can still be considered bullish.

Looking ahead to next week, traders should focus on how price behaves around the current support area. I believe a weekly close above 87.90 would be a positive signal and could attract fresh buying interest. If buyers regain strength, crude oil may attempt another move toward 95.00 first and then challenge the major resistance near 105.00. However, if sellers push the market below 87.90 and hold it there, a deeper correction toward 80.00–75.00 could develop. I think patience is important because the market is currently between a major support and resistance zone. The recent candles show indecision, which means a breakout in either direction could create the next strong trend. The overall structure remains stronger than it was during the long consolidation period below 70.00, but confirmation from price action is still needed before expecting another major rally. Final Trading Plan for Next Week Bullish Scenario (Preferred): Buy above 88.00–89.00 Target 1: 95.00 Target 2: 100.00 Target 3: 105.00 Stop Loss: 84.50 Bearish Scenario: Sell only if a weekly breakdown occurs below 87.90 Target 1: 82.00 Target 2: 78.00 Target 3: 75.00 Stop Loss: 91.50